by juheimbu
Option 1 is the correct one. Time stops, so to speak, during Event resolution.Once you make your defense roll, the result is locked in. So if the defending unit was broken, that morale is what you would have used for the defense roll. The event that brings the hero into play could rally the broken unit, so you'd resolve the event before applying the results of the fire attack, which in this case sounds like a broken unit. It would have broken and been eliminated it, but the hero rallied the unit, so it would re-break. Better a broken unit than a dead one!
Cheers!